Dow Jones Newswires: Chinese developer Kaisa to speed up asset disposals after missing payment
Chinese property developer Kaisa Group Holdings Ltd.
plans to speed up asset disposals to meet investor obligations, after the indebted company missed a payment on a wealth-management product last week.
The Shenzhen-based company has sufficient “high-quality assets” it can tap to make the payments, Kaisa said in a statement on its website late Monday, adding that it would seek to sell assets in Shenzhen, Shanghai and other places. The developer said it would seek to negotiate a more feasible payment plan with investors and expedite sales at its property development projects.
Kaisa apologized to investors in the statement, saying it “sincerely asks investors to give Kaisa Group a bit more time and patience.” The company’s overall asset value is greater than its liabilities, it said.
Shares of Kaisa, one of the Chinese property sector’s biggest borrowers in international bond markets, fell to an all-time low last week after the company missed a payment on a wealth-management product and said it was facing “unprecedented pressure on its liquidity.”
Kaisa had about $10.9 billion of dollar bonds outstanding as of end-June, according to its first-half results.
The Hong Kong-listed stock of the company and various units have been on a trading halt since Friday.